wwf_carbon_tax_qanda_final-0d4a0eb6b0e02e9e.pdf

The document outlines the South African government's plan to implement a carbon tax in January 2019 to shift the social costs of emissions to polluters. While it acknowledges the tax as a cost-effective tool for economic reorientation, WWF South Africa argues that the initial rate of R120 per tonne, combined with allowances of 60% to 95%, is insufficient to incentivize emission reductions. The document recommends a higher tax rate of R162 to R433 per tonne and suggests that revenues be used for pro-poor programs in energy and transport.

• The South African carbon tax, announced in the 2018 budget speech for a January 2019 start, aims to 'put a price' on carbon emissions to shift costs from society to the companies creating them. It is designed to drive investments toward low-emission products and services, create jobs in greener industries, and manage the gradual decline of the coal, oil, petrol, and diesel sectors.
• The proposed tax structure sets a rate of R120 per tonne of carbon emissions, with increases tied to inflation plus 2% until 2022, and inflation only thereafter. However, tax allowances ranging from 60% to 95% effectively reduce the actual rate to between R6 and R48 per tonne, which WWF calculates results in the top 10 emitting companies paying only 0.1% to 0.5% of their turnover.
• WWF South Africa argues that the current design is ineffective and recommends a meaningful tax rate between R162 and R433 per tonne, aligned with Treasury's own research. They advocate for cutting back the 'basket of allowances' and the primary rebate, which they claim serves to 'pacify heavy emitters' rather than reduce emissions.
• Failure to implement an effective carbon price poses economic risks, including the loss of export markets as OECD and G20 countries implement their own carbon pricing and trade barriers. Specifically, the EU has indicated it will not sign trade deals with countries not combating global warming, impacting South Africa, which sends 17% of its exports to European countries.
• The draft Carbon Tax Bill specifies that the tax will be revenue neutral, with Treasury adjusting other levies so overall business tax burdens do not increase. WWF recommends that additional funds be directed toward pro-poor programs, such as improved public transport and increased free basic allowances for water and electricity.

APA

WWF South Africa (n.d.). wwf_carbon_tax_qanda_final-0d4a0eb6b0e02e9e.pdf. https://wwfafrica.awsassets.panda.org/downloads/wwf_carbon_tax_qanda_final.pdf

Chicago

WWF South Africa. wwf_carbon_tax_qanda_final-0d4a0eb6b0e02e9e.pdf. n.d. https://wwfafrica.awsassets.panda.org/downloads/wwf_carbon_tax_qanda_final.pdf.

Wikipedia

{{cite report |author=WWF South Africa |title=wwf_carbon_tax_qanda_final-0d4a0eb6b0e02e9e.pdf |url=https://wwfafrica.awsassets.panda.org/downloads/wwf_carbon_tax_qanda_final.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{wwfsouthafricandwwfcarbontaxqandafinal0d4a0eb6b0e02e9epdf, author = {{WWF South Africa}}, title = {{wwf\_carbon\_tax\_qanda\_final-0d4a0eb6b0e02e9e.pdf}}, institution = {WWF South Africa}, url = {https://wwfafrica.awsassets.panda.org/downloads/wwf_carbon_tax_qanda_final.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }